Crypto World
Is $1 the next stop?
Crypto volatility has hit XRP hard, with macro worries and geopolitical tension putting traders on edge. The most recent drop has pushed the token near a major support level.
Next up, we’ll examine the market and provide our latest XRP price prediction.
Summary
- XRP has recently dropped over 20%, briefly touching $1.13 before recovering to around $1.40.
- The token remains under pressure from macroeconomic uncertainty, geopolitical tensions, and weak spot XRP ETF demand.
- Traders are watching key U.S. economic data, including the February 11 jobs report and February 13 CPI figures, for market guidance.
- In the short term, XRP is expected to trade sideways between $1.13 and $1.50.
- If selling resumes, XRP could test the psychologically important $1.00 level, keeping the overall outlook cautious.
Current market scenario
When investors shun risk, Ripple (XRP) usually takes a bigger hit than Bitcoin, highlighting how sensitive it is during sell-offs. Its lower levels of institutional participation make it more exposed when the market turns cautious. Right now, the XRP price is hovering around $1.40 as traders watch for early signs of renewed buying, but spot demand has remained fairly muted so far.
Over the past month, XRP has been on a steady downtrend, losing nearly 40% alongside the broader crypto market. Another sharp 20% drop this past week suggests that liquidation pressure from recent sell-offs might not yet be fully digested, keeping volatility elevated.
The market is still feeling the impact of macro and geopolitical tensions. Heightened fears of a strike on Iran have triggered risk-off moves, weighing on Bitcoin and altcoins such as XRP. At the same time, spot XRP ETFs are seeing less demand as investors hold back.
Traders are now eyeing key U.S. economic data that could influence the next major market shift. The January jobs report comes out on February 11, with CPI data following on February 13. Both releases were pushed back due to a brief government shutdown, and either could impact crypto prices.
XRP price prediction: Key levels to watch
It’s been a rough few days for XRP, which lost more than 20% and briefly dipped to $1.13 on Friday — a level not seen since early November 2024. XRP has recovered a bit, yet renewed selling could push it closer to the psychologically significant $1.00 mark.
After the big sell-off, the market appears ready to catch its breath rather than rally straight away. Traders seem hesitant to put fresh money to work until macro data offers more clarity. In this scenario, the XRP forecast points to a period of sideways, range-bound movement.
During a sideways trading period, XRP is likely to remain between $1.13 and $1.50 for the time being. A drop below this range would raise the risk of additional downside, while a move above $1.50 could hint at a potential rebound. All in all, the XRP outlook stays cautious as macro uncertainty continues to dominate the market.
The United States has approved a newly created national bank for the first time during President Donald Trump’s second term, granting a charter to crypto-friendly startup Erebor Bank.
The Office of the Comptroller of the Currency (OCC) confirmed the approval on Friday, allowing the lender to operate nationwide, the Wall Street Journal reported, citing people familiar with the matter.
The institution launches with about $635 million in capital and aims to serve startups, venture-backed companies and high-net-worth clients, a segment left underserved after the 2023 collapse of Silicon Valley Bank.
Erebor is backed by a roster of prominent technology investors, including Andreessen Horowitz, Founders Fund, Lux Capital, 8VC and Elad Gil. The project was founded by Oculus co-creator Palmer Luckey, who will sit on the board but not manage daily operations.
Related: Nomura-backed Laser Digital seeks US bank charter amid crypto banking push: Report
Erebor targets defense tech, robotics, AI
The bank is reportedly positioning itself as a specialist lender to emerging industries such as defense technology, robotics and advanced manufacturing. Prospective clients include companies developing AI-driven factories, aerospace research and pharmaceutical production in low-gravity environments.
“You can think of us like a farmers’ bank for tech,” Luckey reportedly told the WSJ, arguing that traditional banks often lack the expertise needed to assess startups with unconventional assets.
Erebor also plans to integrate blockchain-based payment rails enabling continuous settlement, an unusual feature in the US banking system, where transactions typically follow business hours. The Federal Deposit Insurance Corp. previously approved deposit insurance for the institution.
The bank’s strategy includes extending credit backed by crypto holdings or private securities and financing purchases of high-performance artificial-intelligence chips.
Related: OCC Comptroller says WLFI charter review will remain apolitical
Erebor hits $4 billion valuation
In October, Erebor received preliminary conditional approval from the OCC. One month later, its deposit insurance application was approved by the Federal Deposit Insurance Corporation.
Erebor was valued at roughly $2 billion in a funding round last year and later reached a $4 billion valuation after raising $350 million in a funding round led by Lux Capital.
Magazine: Bitget’s Gracy Chen is looking for ‘entrepreneurs, not wantrepreneurs’
US Treasury Secretary Scott Bessent says banks and crypto may begin to offer similar products, and pledged to prevent deposit flight concerns that are stalling a key crypto bill.
US Treasury Secretary Scott Bessent has told Congress that traditional and crypto banking products and services may be more intertwined in the future.
Appearing before the Senate Banking Committee on Thursday, Bessent was asked by Republican Senator Cynthia Lummis whether there could come a time when conventional banks and crypto are offering the same types of products.
“I think that can happen over time,” Bessent said. “We’ve actually been working with small and community banks to discuss how they can be part of the digital asset revolution.”
Bessent tells those resisting regulations to move to El Salvador
Bessent said it was “impossible to proceed” without crypto having clear rules, and said the industry should back the crypto market structure legislation, dubbed the CLARITY Act, that’s before Congress.
“We have to get this CLARITY Act across the finish line, and any market participants who don’t want it should move to El Salvador.”
“We’ve got to bring safe, safe, sound, and smart practices and the oversight of the US government, but also allow for the freedom that is crypto,” Bessent said. “I think it’s a balance that is being worked out.”
Working to prevent bank deposit volatility
The crypto market structure bill has stalled in the Senate Banking Committee as bipartisan talks over inclusions in the bill are at a stalemate.
Related: Crypto firms offer ideas to break market structure gridlock: Report
Lawmakers pushed to add restrictions on stablecoin yields that some crypto companies, notably Coinbase, had resisted. Bessent said that deposit volatility is “very undesirable” because it is the stability of those deposits that allows banks to lend into their communities.
“We will continue to work to make sure that there is no deposit volatility associated with this,” he said.
Several crypto companies reportedly offered concessions this week, suggesting giving community banks a larger role in the stablecoin system to help push the bill through the Senate.
Magazine: DAT panic dumps 73,000 ETH, India’s crypto tax stays: Asia Express
Crypto World
Infinite Possibilities announces upcoming launch of Proof-of-Activity DEX and IP Membership program
- Infinite Possibilities has announced plans to launch iPDex, a multi-chain decentralized exchange aggregator.
- The project is also preparing to introduce its IP Membership NFT.
- iPDex is designed to route swaps across multiple blockchains, including Ethereum, Solana, BNB Chain, and Base.
February 6, 2026 – Infinite Possibilities has announced plans to launch iPDex, a multi-chain decentralized exchange aggregator designed around on-chain activity rather than inflationary incentives.
The project is also preparing to introduce its IP Membership NFT, which will provide early access to ecosystem features ahead of the platform’s broader rollout.
iPDex is designed to route swaps across multiple blockchains, including Ethereum, Solana, BNB Chain, and Base.
According to the team, the platform’s architecture focuses on aligning token issuance and reward distribution with verified trading activity, rather than relying on passive staking or liquidity provision models commonly used in decentralized finance.
As part of the launch, Infinite Possibilities plans to introduce IP, a utility token intended to support platform functionality and participation mechanisms across the ecosystem.
Token distribution is designed to be linked to on-chain activity recorded through iPDex, with supply growth tied to platform usage rather than predefined emissions schedules.
IP Membership program
Ahead of the public launch of iPDex, Infinite Possibilities will open access to its IP Membership NFT program.
The membership is designed to provide participants with early access to platform features, participation tracking, and ecosystem engagement mechanisms during the initial phase of development.
Membership participation involves a contribution denominated in USD equivalent, with participation levels tracked through an internal, non-transferable metric used to measure verified activity within the ecosystem.
Following the membership phase, eligible participants may receive IP tokens based on recorded participation, subject to the program’s published terms and conditions.
The company notes that the membership program is intended to support early ecosystem development and community engagement, rather than serve as a speculative investment product.
Platform development focus
Infinite Possibilities states that iPDex is being developed with an emphasis on protocol-managed liquidity, automated execution mechanisms, and cross-chain trading infrastructure.
The project aims to reduce reliance on user-supplied liquidity while enabling participation through on-chain activity and platform usage.
Additional ecosystem tools, including market data and analytics products, are planned as part of the broader Infinite Possibilities roadmap.
Looking ahead
The iPDex platform and IP Membership NFT program are expected to launch soon.
Further details regarding participation mechanics, eligibility requirements, and platform features will be released through Infinite Possibilities’ official channels.
More information is available at: IP Website | Twitter (X) | Telegram | NFT Membership Sale | BitMarketCap Website | Hacken Report
This article is authored by a third party, and CoinJournal does not endorse or take responsibility for its content, accuracy, quality, advertisements, products, or materials. Readers should independently research and exercise due diligence before making decisions related to the mentioned company.
TLDR:
- Stablecoin inflows now exceed the 90-day average despite Bitcoin struggling to regain upward momentum.
- Exchange liquidity is rising, but selling pressure continues to cap short-term price recovery attempts.
- Investor behavior reflects cautious accumulation rather than aggressive dip buying or breakout chasing.
- Market structure points to a transition phase marked by growing participation and defensive demand.
Stablecoin inflows to exchanges have surged to about $98 billion this week, nearly doubling from late December figures as Bitcoin’s price drops below key support.
Data shows capital moving back onto trading venues while sell-side pressure persists and price remains under strain.
The rising liquidity pattern comes as the market experiences heavy selling and subdued short-term demand.
Liquidity Expansion Without Price Confirmation
Stablecoin inflows have doubled in recent weeks and moved above their 90-day average. This change shows that capital is returning to exchanges after months of muted participation and low turnover.
Bitcoin price, however, continues to weaken as rallies fail to hold. Each recovery attempt meets renewed selling, indicating that supply remains greater than current demand at these levels.
Market observers described the flow as preparation rather than aggressive buying.
The structure suggests that the market is not constrained by lack of funds. Instead, it faces a persistent overhang of available Bitcoin from holders distributing into strength.
Stablecoins typically move to exchanges when investors intend to deploy capital. Their rise signals positioning activity rather than passive storage or risk avoidance.
Yet the absence of price response shows that buyers are executing cautiously. Orders appear layered and incremental, absorbing dips instead of pushing breakouts.
This pattern keeps volatility elevated while preventing sharp upside movement. Liquidity builds under the surface, but price remains trapped by steady sell-side pressure.
The result is a market where participation grows without trend confirmation. Exchange activity increases even as the broader structure remains corrective.
Defensive Demand and Early Accumulation Signals
The current environment reflects demand that is present but restrained. Investors appear focused on controlled entries rather than rapid exposure to price swings.
This behavior aligns with early accumulation phases observed during past deep corrections. Ownership changes gradually while price trades sideways or lower.
Another analyst tweet emphasized that stablecoins move before sentiment improves. The message framed the flows as strategic positioning instead of speculative chasing.
Such activity suggests that capital is preparing for longer-term opportunities rather than short-term rebounds. The market shows signs of patience rather than urgency.
Supply continues to dominate short-term price action. Long-term holders, miners, and treasury accounts remain active sellers during relief rallies.
As a result, price fails to convert higher inflows into sustained momentum. Demand absorbs pressure but does not overwhelm it.
This structure often leads to extended basing periods. Price can remain range-bound while liquidity and participation rebuild beneath the surface.
Historical patterns show that either consolidation or a volatility flush can follow this phase. Both outcomes depend on how supply responds to rising demand.
For now, stablecoin inflows signal that investors are no longer absent from the market. Capital is present, but conviction remains measured.
The market continues to adjust through balance rather than reversal. Liquidity growth and selling pressure coexist, shaping a cautious and transitional trading environment.
TLDR:
- Aave Umbrella automates bad debt coverage, reducing reliance on governance intervention.
- Users earn rewards by staking aTokens and GHO while actively securing the protocol.
- Deficit offset mechanisms limit slashing risk, safeguarding stakers during lending stress events.
- Transition from Safety Module ensures seamless integration for existing Aave stakers.
Aave Umbrella arrives as the Aave Protocol leads DeFi with over $50 billion in deposits, weathering recent market volatility. This includes $450 million in collateral liquidations across multiple networks in the past week.
Umbrella automates bad debt coverage and rewards staking participation, enhancing risk management precision and reducing governance delays in one of the largest decentralized lending ecosystems today.
Aave Umbrella Activation and Staking Mechanisms
Aave Umbrella is a modular system designed to manage bad debt in Aave v3 pools. It replaces the legacy Safety Module with automated coverage, relying on on-chain deficit data rather than governance intervention.
Activation begins with Ethereum, focusing on high-borrow-demand assets such as USDC, USDT, WETH, and GHO. Each deployment protects only the asset and network where it is staked, ensuring precise risk isolation.
Staking is central to Umbrella’s design. Users can stake aTokens, including aUSDC, aUSDT, and aWETH, or GHO, Aave’s native stablecoin. aToken stakers continue earning underlying yield while receiving additional Safety Incentives for participating in risk management.
GHO staking provides only Safety Incentives since it does not generate underlying yield. These rewards are claimable on-chain and vary depending on governance configuration.
The system uses a mathematically modeled Emission Curve to balance rewards. Maximum incentives are provided when total staking matches the target liquidity, with higher rewards below target to encourage participation and slightly reduced rewards above target to prevent over-staking.
This ensures predictable APY behavior, avoids extreme fluctuations, and incentivizes optimal engagement from the community.
Risk Management and Deficit Protection
Umbrella integrates slashing risk for stakers, limited to the specific asset and network they support. For example, staking aUSDC only covers USDC deficits.
The system includes first-loss offset mechanisms to protect participants. USDT staking, for instance, has a 100,000 USDT buffer, covering minor deficits before affecting staker assets.
These mechanisms drastically reduce the probability of slashing in typical scenarios. The protocol’s automated liquidation network complements Umbrella by actively managing distressed positions.
When liquidations cannot fully cover bad debt, staked assets in Umbrella are burned to offset deficits. This process eliminates manual intervention and governance delays, enhancing responsiveness and security.
During the first month of Aave v3.3, only $400 of deficits arose against nearly $9.5 billion in borrows, demonstrating Umbrella’s efficiency.
Umbrella allows broader participation in protocol security. Suppliers who are not borrowing can stake assets, actively contribute to risk management, and earn rewards.
Transition mechanisms from the legacy Safety Module ensure that stkAAVE, stkABPT, and stkGHO positions can migrate without immediate slashing risk. This creates an inclusive system where stakers align incentives with protocol health, ensuring long-term resiliency.
China has moved to lock down virtually all crypto and real‑world asset (RWA) tokenization activity, issuing a new notice that declares such operations illegal financial activity and extends liability across the entire service stack.
Summary
- A joint PBoC notice declares Bitcoin, Ether, Tether and similar tokens lack legal tender status and brands all virtual‑currency business activity as illegal finance to be “resolutely banned”.
- RWA tokenization is swept into the same risk bucket, with onshore issuance and trading prohibited absent explicit approval and offshore entities barred from serving mainland users.
Core of the new notice
The joint circular from the People’s Bank of China (PBoC) and seven other ministries states bluntly that “virtual currency does not have the same legal status as legal tender” and that tokens such as “Bitcoin, Ether, Tether…do not have legal compensation and shall not and cannot be used as currency in the market.” All “virtual currency‑related business activities” — including fiat–crypto exchange, crypto–crypto trading, market‑making, information intermediation, token issuance and crypto‑linked financial products — “are illegal financial activities” and are to be “strictly prohibited” and “resolutely banned.”
Real‑world asset tokenization is folded into the same risk bucket. Authorities define RWA tokenization as converting ownership or income rights into tokens for issuance and trading, and warn that such activities in China “shall be prohibited” unless explicitly approved on designated financial infrastructure. Offshore entities are also barred from “illegally providing…RWA tokenization‑related services” to onshore users.
Enforcement, mining and offshore routes
The notice hardens the multi‑agency framework first laid out in 2021’s Yinfa No. 237, which labeled key crypto activities as illegal and banned offshore exchanges from serving mainland clients. Financial institutions and payment firms are now forbidden from opening accounts, transferring funds, settling, custoding, or insuring any virtual‑asset‑linked product. Internet platforms may not provide “online business venues, commercial displays, marketing, traffic‑buying or paid promotion” for crypto or RWA services and must help shut down relevant websites, apps and public accounts.
Beijing also renews its campaign against mining, ordering provinces to “comprehensively identify and shut down existing virtual currency ‘mining’ projects” and “strictly prohibit” any new capacity. On offshore structuring, regulators apply a “same business, same risk, same rules” principle: domestic entities and the overseas vehicles they control may not issue virtual currencies or conduct RWA‑style securitizations based on onshore assets without prior approval, filing or registration.
Market context and price action
The clampdown lands in a market where global traders continue to treat digital assets as high‑beta macro risk. Bitcoin (BTC) trades near $66,005, down roughly 7.9% over the last 24 hours. Ethereum (ETH) changes hands around $1,890, lower by about 11.6% on the day. Solana (SOL) sits near $77.8, off approximately 15.4% in 24‑hour terms.
The notice takes immediate effect and simultaneously repeals the landmark 2021 circular on virtual‑currency speculation, signaling that China’s stance has shifted from episodic crackdowns to a durable, high‑pressure regime designed to “maintain economic and financial order and social stability” and leave no grey zone for crypto or RWA experimentation.
ARK Invest, the asset manager led by prominent Bitcoin bull Cathie Wood, has shifted from buying to selling Coinbase stock, as the shares dipped 13% and hit multi-month lows.
On Thursday, ARK offloaded 119,236 Coinbase (COIN) shares, valued at roughly $17.4 million, according to a trade filing seen by Cointelegraph.
The sale comes just a day after a modest 3,510-share ($630,000) purchase on Tuesday, following a series of buys at higher prices earlier in 2026.
This marks ARK’s first Coinbase sale of 2026 and its first since August 2025, signaling a shift in trading strategy. The cryptocurrency exchange’s stock is down around 37% year-to-date, according to Nasdaq data.
ARK sold Coinbase and bought Bullish
ARK spent almost the same amount it dumped in Coinbase shares to acquire 716,030 shares ($17.8 million) in Bullish (BLSH), an institution-focused digital asset platform that listed on the New York Stock Exchange in August 2025.
Since the trading launch, Bullish shares had slumped more than 60% to $24.9 on Thursday’s close, according to NYSE data.
Related: BlackRock’s IBIT hits daily volume record of $10B amid Bitcoin crash
ARK was one of the largest buyers of Bullish’s IPO, alongside investment giant BlackRock.
ARK holds $312 million in Coinbase stock
ARK’s latest Coinbase sale comes amid a sharp crypto market pullback, with Bitcoin (BTC) dipping below $70,000 on Thursday to briefly touch $60,000 on Friday.
For ARK, a major backer of Coinbase during tough market conditions, the move marks a notable reversal.
To date, ARK still holds $312 million in Coinbase shares across its three funds — the ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF), with COIN representing 3.7%, 3.4%, and 4.95% of each fund, respectively.
Since its April 2021 trading debut, Coinbase stock has fallen about 60%, from an opening price of $381, according to Nasdaq data.
Magazine: Bitcoin’s ‘miner exodus,’ UK bans some Coinbase crypto ads: Hodler’s Digest, Jan. 25 – 31
Bitcoin (BTC) rebounded above $65,000 on Friday, up 11% from 15-month lows below $60,000, as focus shifted to institutional dip buyers.
Key takeaways:
-
Bitcoin finally sees investors who are willing to “buy the dip” as prices dropped to sub-$60,000 levels.
-
Traders have shifted their focus to $58,000 as the last line of defense for Bitcoin.
Bitcoin wipes out $1.1 billion longs on drop to $59,000
Bitcoin price fell as low as $60,000 on Thursday, erasing 15 months of bullish gains as investors accumulated more at lower levels.
This extended the drop from its all-time high of $126,000 reached on Oct. 6, 2025, to 50% and was accompanied by massive liquidations across the derivatives market.
Related: Big questions: Should you sell your Bitcoin for nickels for a 43% profit?
Data from monitoring resource CoinGlass showed crypto liquidations over 24 hours nearing $2.6 billion, with longs accounting for $2.15 billion. Bitcoin accounted for $1.1 billion in long liquidations.
Bitcoin dip-buyers finally emerge
Binance’s Secure Asset Fund for Users (SAFU), an insurance fund established by Binance in July 2018 to protect users’ assets, bought another 3,600 BTC worth $250 million at about $65,000 per BTC.
Last week, Binance announced its intention to convert $1 billion SAFU reserves into Bitcoin over the next 30 days.
The first batch of 1,315 BTC, worth about $100 million was bought earlier this week, leaving $565 million more to be converted.
Crypto hedge funds have also been buying the dip, data from Bitwise shows.
The aggregate market beta across all global crypto hedge funds hit its “highest level in 2 years” as Bitcoin weakened, European head of research at Bitwise André Dragosch said in a Friday post on X, adding:
“This signals increasing $BTC market exposure by global crypto hedge funds.”
Dragosch also said that record ETF volumes amid moderate net outflows on Thursday suggested that there “were lots of dip buying” by US-based spot Bitcoin ETFs as well.
200-week MA: Bitcoin’s last line of defense?
BTC touched lows below $60,000, leaving traders to question where Bitcoin was likely to find a bottom.
“$BTC is testing the previous cycle highs, and bouncing slightly so far,” said trader Jelle in a Friday post on X.
According to Jelle, Bitcoin was required to hold a key area of interest between $58,000 and $62,000 to avoid a deeper correction.
“Time to see if we start basing here, or if we just roll over again.”
The $58,000 level coincides with the 200-day SMA, a key support level for BTC price, according to MN Capital founder Michael van de Poppe.
Given that Thursday’s $10,000 drop was the largest volume candle on record, the “assumption can be made that we hit the low there, for now,” van de Poppe said, adding:
“If prices can rally up slightly, we’re going to see a large wick. Like we always see with capitulation events.”
As Cointelegraph reported, Bitcoin’s demand zone now sits above $58,000, supported by historic transaction volume and the 200-week moving average.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Google search volume for the term “Bitcoin” surged over the past week as the asset’s price briefly fell to the $60,000 level for the first time since October 2024.
Google Trends provisional data shows worldwide searches for “Bitcoin” reached a score of 100 for the week starting Feb. 1, the highest level in the past 12 months.
The previous peak was a score of 95 in the week of Nov. 16–23, when Bitcoin (BTC) slipped below the psychological $100,000 level for the first time in nearly six months.
Google search interest is one of several commonly used indicators among crypto analysts to gauge retail interest in Bitcoin and the broader crypto market, which typically spikes during significant price moves, particularly major rallies to new all-time highs or sudden sell-offs.
The increase comes as Bitcoin dropped from about $81,500 on Feb. 1 to roughly $60,000 within five days, before rebounding to $70,740 at the time of publication, according to CoinMarketCap.
Some market observers suggest the current price range may be drawing renewed attention from a broader retail audience. Bitwise head of Europe, André Dragosch, said in an X post on Saturday, “Retail is coming back.”
Meanwhile, CryptoQuant’s head of research, Julio Moreno, said in an X post on Saturday that US investors are buying Bitcoin after it reached $60,000. “The Coinbase premium is now positive for the first time since mid-January,” Moreno said.
Other indicators suggest that investors are still cautious about the crypto market. The Alternative.me Crypto Fear & Greed Index fell further down once again on Saturday to an “Extreme Fear” score of 6, nearing levels that haven’t been seen since June 2022.
Related: Crypto’s stress test hits balance sheets as Bitcoin, Ether collapse
The sentiment indicator’s decline to such low levels has led some market participants to suggest it could signal a buying opportunity.
Crypto analyst Ran Neuner said in an X post on Friday that, “every single metric is telling you that Bitcoin has never been more undervalued on a relative basis.”
Magazine: Bitcoin’s ‘biggest bull catalyst’ would be Saylor’s liquidation: Santiment founder
Perpetual DEXs processed over $70B on Feb. 5, their second‑biggest day ever, as Hyperliquid, Aster, edgeX and Lighter absorbed a sharp BTC, ETH, SOL‑led deleveraging.
Summary
- Per DeFiLlama, perp DEXs cleared $70B+ on Feb. 5, second only to the Oct. 10, 2025 “1011” crash that saw $19B in liquidations and sent BTC from $117,000 to $101,800.
- Hyperliquid handled $24.699B (about 31% share) in 24 hours, Aster $11.553B (~14.6%), edgeX $8.675B (~11%), and Lighter $7.537B (~9.5%), with edgeX alone credited with $600B+ in cumulative volume and over $1B in OI.
- As BTC hovered near $64,000, ETH in the high $1,800s, SOL around $79–80, and XRP near $1.37, perp DEXs proved to be a primary venue where leveraged crypto risk is warehoused and unwound.
Perpetual DEXs just printed their second-biggest day on record, turning a brutal sell-off into a stress test that DeFi largely passed.
Volume shock and “1011” shadow
According to DeFiLlama data, perp DEXs processed more than $70 billion in volume on Feb. 5, the second-highest daily tally in history and only behind the Oct. 10, 2025 “1011” flash crash. That earlier event saw over $19 billion in liquidations in a single day and sent Bitcoin from roughly $117,000 to $101,800, cementing “1011” as a structural stress event for crypto leverage.
On Feb. 5, the pain was smaller but the pipes were busier. Hyperliquid led with roughly $24.7 billion in 24-hour volume, Aster followed at about $10–11.6 billion, edgeX cleared around $8.7 billion, and Lighter handled roughly $7.5–7.5+ billion, according to DeFiLlama’s perp dashboard. Together, those four accounted for well over half of all perpetual DEX turnover.
Hyperliquid, Aster, edgeX, Lighter
Per DeFiLlama’s breakdown, Hyperliquid captured about 31% of total perp DEX volume over the last 24 hours, with a 24-hour print of $24.699 billion and roughly $248.1 billion traded over 30 days. Aster posted about $11.553 billion in daily volume, up 112% on the day and representing roughly 14.6% of total perp flows. edgeX processed $8.675 billion (+66.3% daily) for nearly 11% share, while Lighter’s $7.537 billion (+86.9% daily) translated into about 9.5% of the market.
These venues are increasingly driven by incentives and points programs, with edgeX for instance already credited with more than $600 billion in cumulative user trading volume and over $1 billion in open interest in recent campaigns. Volumes of this scale suggest a core mix of BTC, ETH and SOL perps, plus high-beta altcoin pairs that traders use to express directional and basis views; during sharp drawdowns, BTC-USD, ETH-USD and SOL-USD contracts typically dominate notional flow and liquidations, while long-tail pairs add convexity but less absolute size.
Market backdrop and major coins
Spot and perp flows met in a classic deleveraging move. Bitcoin traded near $64,000 on Feb. 6, down around 11–12% over 24 hours in some market snapshots. Ethereum hovered in the high $1,800s, after a multi-week slide from above $3,000 and with technicians now eyeing the $1,600–2,000 band as a key trading range. Solana changed hands around $79–80, off roughly 14% on the day, with a 24-hour range between about $70.6 and $92.8. XRP traded near $1.37, with a 24-hour low of $1.14 and high around $1.38.
What this day signals
The Feb. 5 spike shows perp DEXs are no longer a niche hedge; they are where a large chunk of leveraged crypto risk is now warehoused and unwound. Compared with “1011,” the latest sell-off generated less outright liquidation carnage but pushed structurally higher volumes through Hyperliquid, Aster, edgeX and Lighter, underscoring how much directional positioning has migrated on-chain in under 18 months.
Form 144 KEYCORP /NEW/ For: 7 February
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